Credit and What is the Impact?

The article below is a little extreme, but it is real. We all saw it on national TV and we have taken the time to discuss the foreclosure issues on InvestSmarter.com and it is a major problem. It's a never ending spiral and guess what....it's here in full effect in the Destin Florida Real Estate market. Don't let it catch you off guard. The downward spiral of debt management is a never ending trend. You get behind and can't catch up. Hope that the economy doesn't take one or both of the spouse out of work! There is some good information as they mention below. Take some time to really look into the outcomes on FreeCreditReport and see what you can do now to save your future!

Ed McMahon's New Job: Talking About Credit Ed McMahon, who recently nearly lost his home to foreclosure, has found a new gig. The 85-year-old is posing as a rapper in a television commercial for Experian's FreeCreditReport.com.In the ad, McMahon raps about how to avoid bad credit, and he speaks from experience. Charles Harris, senior vice president of marketing for FreeCreditReport.com, said his company got the idea after watching McMahon appear on the "Larry King Live" TV talk show this summer when he discussed his foreclosure problem and took the blame for not managing his debt better.McMahon made headlines this past summer when he defaulted on a $4.8 million mortgage on his six-bedroom home. At that time he was said to be $644,000 in arrears on the debt.Source: Reuters News, CNN.com (09/25/2008)

For more information online about foreclosures and short sales also visit http://www.randbcoastalrealestate.com/ and you can search for properties for sale in the Destin Real Estate Short Sale Market online.

Tired of Renters or Managing Property? Many Investors Turn To Land

When all else fails in real estate, vacant land can be one of the easiest investments to make! That's right...no headaches of renters, fees, hidden woops. Just easy things like a mortgage if there is one, and property taxes. Yes no repairs, insurance adjustments, vacant tenants, damage, upkeep, etc.

So land does have a few benefits, but the tax advantage isn't as great, but it's also a much easier investment for many people once they determine what they can afford. Vacant Land in Destin Florida is a little more difficult to come by, but it is there. Commercial and Residential lots are great long term investments and even more so in today's market!

Here is an interesting article about investing in land:

Daily Real Estate News August 29, 2008Consider Stocking Up on Land More small buyers are investing in undeveloped land. "There is a really attractive market emerging for the small investor," says Eric O'Keefe, editor-in-chief of Land Report magazine. "With credit tightening, what you're seeing in essence is some of the air being let out of the bubble that was driving prices up."Buying land is no slam-dunk. An investor must be able to judge which land is most apt to deliver a profit down the road and be able to hold onto the property long enough to benefit.Also, variations in prices make these kinds of investments painful for the faint of heart. For instance, the Texas real estate commission reported that land prices went up by 20 percent in 2007. But land values in Southern California have tumbled at least 50 percent along the coast and as high as 90 percent. inland, investors say.Plus, ownership can be expensive. Besides high borrowing costs, there are property taxes and liability insurance costs to pay.Nevertheless, some investors are convinced now is the time. "It's a delicate business, but it's just about bad enough to be good again," says William Shopoff, chief executive of Shopoff Group, a real estate investment firm in Irvine, Calif.Source: Investor’s Business Daily, Brad Kelly (08/29/2008)

So if you take some of the basics and apply trends and growth, land can be a great investment, but it's 100% out of pocket and with no real breaks. So be prepared for a longer investment!

For more information on investing in Land please visit http://www.randbcoastalrealestate.com/ where you can search from Pensacola to Panama City for property that is for sale.

Multi Family Buildings More Appealing

Many young and financially savy buyers are turning towards multifamily and income producing properties. Some are renting part and living in the other part, some are just making the investment. These days with caps on FDIC requirements at $100k, and the fear of banks going under...where else can you put your money?

One place in the Destin Real Estate market is similar to below. Visit www.InvestSmarter.com to see more information on investing in multi family properties.

More Buyers Seek Multifamily Properties

Multi-unit properties are regaining popularity among buyers who see them as a way to house extended family members or as an opportunity to get a little help with the mortgage.People of all types purchase multifamily property, says Cory Weiss, estates director of Prudential California Realty in Beverly Hills. "We have foreign buyers as well as owner-users that want to live in a unit and then rent the others out." Magdalena Glen-Schieneman, owner of MGS Architecture in Venice, Calif., says clients seeking multi-family properties are often young, well heeled and financially savvy. "They're looking to maximize their real estate assets by generating revenue with outlying structures."Chad Parsons and his partner, Wolfgang Bauer paid $399,000 in 2002 for a three-unit property in Venice, Calif. Parsons says he thinks properties like theirs could become increasingly popular in overpopulated areas. "I think as the population grows and the space disappears in Los Angeles and other metro areas . . . it's less realistic for people to have large pieces of property with a single home."

Source: Los Angeles Times, Chuck Green (07/20/2008)

For more information on the Destin Real Estate market also visit www.Real-Estate-Destin-Florida.com for some of the latest trends and to become part of the InvestSmarter network.

Creeping interest rates...not a good thing

With things changing as much as they are today who really knows what tomorrow will bring. The one thing that always stays the same is the net outflow of money!! With milk, eggs, bread, insurance, etc all going up and interest rates on the upswing also, markets like Destin Florida are just going to kindof float along. It seems like everything is just a little bit negative these days. There are deals...and if we can get the payment right..it might just work out.

Take some time to review the strategies online at www.investsmarter.com and take a look at what is really happening in the market. There are a few cool ways to approach deals that are
outside the box. But with rates like the article below says going up...what will happen next?

Rising Mortgage Rates Could Slow Sales Rising mortgage rates could prolong the housing crisis, economists say."It strains affordability, and if mortgage rates were to stay at a high level, home prices would have to fall even further," says Michelle Meyer, an economist at Lehman Bros.Cameron Findlay, chief economist at LendingTree, says that over the next six months rates could rise rapidly. "If we don't have inflation under control by then, and there are still signs of inflation – the dollar's continuing to be eroded, oil prices are still high – rates are going to be rising faster."Scott Lanoff of American Success Mortgage in New York says he expects the average 30-year fixed rate to top out at about 6.75 percent.Source: USA Today, Anna Bahney (06/30/2008)

So for more information on Destin Florida Real Estate look here and also play around online at www.Destin-Florida-MLS.com and see if there is a nice piece of property that catches your eye!

Jumbo Rates More Affordable

In and ever changing market and areas like Destin Real Estate, higher priced properties become even more expensive with higher interest rates! There does seem to be a narrowing of the gap as per the message below. On www.InvestSmarter.com we have taken the time to put together calculators that make it a little easier to find what you are looking for from a price stand point. Many consumers today are simply looking at the cost per month instead of the total cost paid.

Daily Real Estate News June 19, 2008

Jumbo-Conforming Rate Spread Narrows

Interest rates on certain types of jumbo loans are finally dropping out of the stratosphere.Rates on jumbo-conforming loans, which were approved by Congress in February for use through the end of 2008, are currently 6.59 percent, according to HSH Associates in Pompton Plains, N.J., compared to an average of 6.46 percent for similar loans with smaller balances. Non-conforming jumbos are averaging 7.4 percent.At J.P. Morgan Chase & Co., the volume of jumbo-conforming applications has doubled since prices began to fall in early May. For some California lenders, jumbo-conforming loans now account for as much as 25 percent of applications, says Pete Ogilvie, president of the California Association of Mortgage Brokers."Most of the activity is in purchases, which is nice because it opens up the market for entry-level homes," Ogilvie says.Source: The Wall Street Journal, Ruth Simon (06/19/2008)

For more information on Destin Real Estate please visit www.Destin-Florida-MLS.com to see what is available and find that perfect second home, condo, or full time residence today.

Destin Real Estate Blog Launch and New VA limits potentially increased

The Destin Real Estate market has to be one of the most exciting areas in the country. Sure it has seen it's ups and downs but compared to other areas prices are still very reasonable for what you are able to acquire. That being said rates have begun to creep once again and many have been weary of what to do. Destin Real Estate buyers are a good mix of people from different backgrounds. One of the interesting demographics that most people don't realize is the retired military or previous service members. With bases like Eglin Air Force Base, Hurlburt Field, Panama City Naval, Pensacola Naval and Tyndall Air Force Base, and don't forget Fort Rucker all within a 15 minute-2 hour drive there is a surplus number of service members here. The VA loan limits have been a little low for what was needed in our area, but it looks like there is some thought to increasing those limits as in the article below...let's cross our fingers!

Daily Real Estate News June 6, 2008

Making VA Loans Relevant Again

U.S. Rep. Bob Filner (D-Calif.), chairman of the House Veterans Affairs Committee, is pushing a proposal to raise the ceiling on loan amounts to $730,000. Meanwhile, Sen. Daniel Akaka (D-Hawaii), chairman of the Senate veterans' affairs committee, has proposed a bill that would lower the equity requirement for a veteran to refinance a mortgage with a VA loan from 10 percent down to 5 percent; and Rep. Steve Buyer (R-Ind.) wants the maximum for VA-backed loans for refinancing to be at least $417,000. The lack of competitiveness of VA-guaranteed loans has resulted in their nationwide decline from a recent peak of nearly 500,000 in 2003 to just 133,000 last year, Filner says. Meanwhile, the Department of Veterans Affairs says its loan counselors have assisted 74,000 home owners since 2000, including half of all VA loans in serious default last year, and have helped save the government nearly $1.5 billion.

Source: Stars and Stripes, Tom Philpott (06/06/08)

This would be a wonderful asset for our friends in the service so they could at least afford to purchase in this market if they had the capital to invest. Obviously many of our veterans are severely under paid but we should always bend over backwards whether in the Destin Real Estate market or anywhere in the country!